Know the Mixed Economic System
Mixed economic system is a combination of two forms of economic system socialism and capitalism. This unification process is carried out to absorb the positive and dynamic elements of the two economic systems. This system is a combination of the strengths of the two economic systems.
The History of Mixed Economic Systems
The history of the violent and even disharmonious opposition of capitalism and socialism has stimulated thinkers to seek an economic structure with the basic characteristics of combining the best of both elements.
In fact, this economic system may eliminate the connotation of a combination of the two economic systems because the mixed economic system has its own characteristics.
The mixed economic system drives dynamic elements that were previously owned by each economic system. In fact, the two forms of economic system have moved towards a mixed system because each tries to get rid of its weaknesses so that dynamic and positive elements remain.
As Hegel said that the development of a thought will reach the best form through a dialectical process towards a synthesis (dialectical theory). This process is a combination of thesis and antithesis in harmony and leads to dynamics.
Developing countries think that they will be able to catch up by not following the extreme forms of the economic system, but absorbing the dynamic elements of both. One of Hegel's thoughts is interesting to note as the rationale for why a mixed economic system emerged as an alternative to a conflicting system.
If that happens, the two economic systems have fundamental weaknesses, so the best way is to combine them to catch up with developing countries. This dialectical phenomenon as a theory was discovered by the idealism group and experienced its peak in the thought of the philosopher Hegel.
Dialectics was once proposed by Immanuel Kant as a logic of reasoning against nature and world phenomena to provide a transcendent validation. Then, Hegel interprets dialectics as the operationalization of reasoning, without any connection with the transcendent.
This gives a truer and deeper reality than the analytical thinking of contradictions as a result of the combination of ideas that can be achieved through synthesis to produce truer knowledge.
The increased synthesis process is the main reason for the realization of a mixed economic system which is a combination of the systems of capitalism and Marxism. This is not unlike Karl Marx who adopted dialectics as the formation of classes in history that have always faced each other.
The motive for seeking profit is the most important element in economic activity and production. However, not everything is emphasized in the economic system of capitalism.
Without the profit motive, there will be no business and economic growth will be hampered if the motive is suppressed and turned off like in a communist country. The mixed economic system remains based on the principle of a market controlled by government regulations.
Definition of Mixed Economic System
Mixed economic system is a combination of the capitalist system and the socialist system. This blend takes the middle line between freedom and control.
So, it can be interpreted as a middle ground between the absolute role of the state and the prominent role of the individual. This middle ground is adapted to the conditions when the combination occurs, so that the role of the situation and the environment gives color to the mixed system. Many developing countries have a mixed economic system.
Characteristics of a Mixed Economic System
- Economic activities are carried out by the government and the private sector.
- Economic transactions occur in the market and there is interference from the government.
- There is competition and there is still control from the government.
Weaknesses of a Mixed Economic System
- The burden on the government is heavier than the burden on the private sector.
- The private sector is not maximizing profits.
That is a short article about Know the Mixed Economic System. Hopefully, it will useful to you.
Post a Comment for " Know the Mixed Economic System "